The company also rolled out a new four-cylinder diesel engine, OM 654, assembled at Mercedes-Benz Chakan facility here.

After the successful market debut of the E350 d diesel and the E 200 petrol, the new E 220 d will further enhance the unprecedented demand of the long wheelbase E-Class, the company said.

The E 220 d variant will be powered by the new four cylinder diesel engine OM 654, it said.

"With the launch of the much-awaited E 220 d, we are now extending the E-Class product portfolio even further and making it highly versatile," Mercedes-Benz India managing director and CEO Roland Folger said.

Mercedes-Benz India is confident that the E 220 d will continue to remain the most sought after luxury business saloon and an important pillar of its productive offensive in India, he said.